Building a Strong Credit File (By Making Timely Payments)when You

question 42

Multiple Choice

Building a strong credit file (by making timely payments) when you in college and beginning your career is

• A) unwise as you will have to pay interest on the deferred amounts.
• B) wise so that when you are ready to make major purchases like a car and a home, you can obtain favorable interest rates.
• C) unwise; only buy what you can afford to pay cash for.
• D) Both A and C are correct.

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Definitions:

Purchases Method

An accounting method for consolidating the financial statements of entities when one controls another, focusing on the parent's purchase of the subsidiary.

Office Supplies

Consumable items used in an office for daily operations, such as pens, paper, and staplers.

General Fund

The main operating fund of a government, covering general expenses not accounted for by specific funds.

Government-Wide Financial Statements

Comprehensive financial reports that display the financial condition of a government entity as a whole, as opposed to focusing on individual funds or accounts.